Judge might reopen school finance case

By Peggy Fikac :
June 5, 2013
: Updated: June 5, 2013 10:24pm

State District Judge John Dietz ruled Texas' public school funding system wasn't constitutional.

AUSTIN — A judge who ruled Texas' public school finance system unconstitutional may reopen the case to consider new legislative action, including an infusion of money to help make up for cuts in 2011 and a cutback in some requirements.

State District Judge John Dietz indicated he's willing to have a hearing if there's substantial agreement to do so among parties in the case, after a lawyer for school districts rich in property wealth asked him to reopen it and a state lawyer said a hearing would be in order.

Property-poor school districts weren't as quick to jump on the bandwagon, noting that while lawmakers have acted, Gov. Rick Perry will decide how much of their work actually becomes law.

Perry has until June 16 to sign or veto bills or to allow them to become law without his signature. Dietz set a June 19 court date for the parties to submit a proposed motion, detail what the hearing would entail and prepare a spreadsheet of their disagreements.

There have been rumors that Perry may veto some of the extra money allocated for schools to help restore some of the funding cut two years ago in the face of a forecast of a revenue shortfall.

Dietz this year said the state school finance system is unconstitutional. He called it inequitable and inadequate and said that it has led to what is in essence a statewide property tax because so many districts must tax locally at or near the maximum rate. School funding relies on local school property tax revenue, state money and federal funds.

Dietz's final ruling is expected to be appealed to the Texas Supreme Court.

Mark Trachtenberg, a lawyer for property-wealthy school districts, said Wednesday that he would like the case reopened to ensure the Supreme Court has an up-to-date record. That would avoid the delay that would ensue if the high court received the case, then punted it back to Dietz to ensure the legislative action was taken into account, he said.

Trachtenberg said that while the Legislature's action was a step in the right direction, he still expects the districts to prevail, citing his group's adequacy and tax claims.

“Districts in my coalition got very little new money. We don't think the adequacy problem has been solved. We don't think the state property tax problem has been solved,” he said.

Assistant Attorney General Shelly Dahlberg, representing the state, maintained that the system was and remains constitutional. She said that because the Legislature made significant changes, there should be a limited evidentiary hearing to gauge their effect.

David G. Hinojosa, southwest regional counsel for the Mexican American Legislative Caucus representing several property-poor districts including San Antonio's Edgewood ISD, said he didn't yet know if he'd oppose reopening the case. But he called it “incredible” that wealthy school districts should urge that action after winning. He contended that they don't like the findings on equity, which would benefit poor districts. He also said solid numbers on equity won't be available quickly.

“It's quite incredible, I will tell you, that as a lawyer that you prevail, and then you tell the court, 'Don't issue your judgment, Judge, in our clients' favor because we want you to reopen the evidence that probably, at best, will hurt school districts a little,'” Hinojosa said.

Lawyer David Thompson, representing a group of districts including Houston ISD, said he wants to withhold judgment on whether the record should be re-opened until after Perry's veto deadline.

“We know the Legislature passed quite a bit,” said Thompson, whose group includes property-rich and property-poor school districts. “We don't know what's actually going to become law as we sit here today.”